NZD/USD Technical Analysis: Key Channel Floor Retested
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- NZD/USD Technical Strategy:Flat
- Support: 0.7448, 0.7344, 0.7280
- Resistance:0.7532, 0.7616, 0.7680
The New Zealand Dollar renewed its advance against its US namesake having bottomed after putting in a bullish Morning Star candlestick pattern. Near-term resistance is at 0.7532, the 50% Fibonacci retracement, with a break above that on a daily closing basis exposing the 61.8% level at 0.7616. Alternatively, a turn below the 38.2% Fib at 0.7448 opens the door for a challenge of the 23.6% retracement at 0.7344.
Prices are too close to resistance to justify entering long from a risk/reward perspective. On the other hand, the absence of a defined bearish reversal signal suggests that taking up the short side is premature. With that in mind, we will remain flat for now.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com